Oil prices edged higher on Friday as fears of supply disruptions intensified after reports that the United States could intercept additional tankers carrying Venezuelan crude. Despite the rebound, prices remained on course for a weekly decline, with market sentiment still supported by optimism surrounding a potential Russia-Ukraine peace agreement.
Brent crude futures climbed 29 cents, or 0.5%, to $61.57 a barrel by 0115 GMT. U.S. West Texas Intermediate (WTI) crude also gained 31 cents, or 0.5%, to trade at $57.91 a barrel. Both benchmarks had fallen roughly 1.5% in the previous session.
Supply concerns resurfaced after U.S. authorities signaled plans to stop more vessels transporting Venezuelan oil, following the seizure of a tanker earlier in the week. According to sources familiar with the matter, the move is part of Washington’s broader effort to increase pressure on Venezuelan President Nicolas Maduro, raising fresh fears of tighter global supply.
The tanker seizure prompted renewed buying interest after recent selling pressure linked to expectations that supply constraints could ease if progress is made toward ending the Russia-Ukraine war. Hiroyuki Kikukawa, chief strategist at Nissan Securities Investment, said the market was reacting to the risk of near-term supply disruptions, even as traders remain focused on diplomatic developments.
Attention is expected to remain on peace talks between Russia and Ukraine in the coming weeks. Kikukawa noted that if a meaningful agreement is reached, WTI prices could test the $55 level, as a deal would likely allow more Russian oil—currently restricted by Western sanctions—to return to global markets.
European leaders from Britain, France and Germany held discussions on Wednesday with U.S. President Donald Trump regarding Washington’s latest efforts to broker peace, describing the moment as critical for negotiations. However, geopolitical risks persist. On Thursday, Ukrainian drones reportedly struck an oil platform in the Caspian Sea for the first time, forcing a halt in production at a facility operated by Lukoil.
Meanwhile, the International Energy Agency (IEA) revised its outlook for the oil market in its latest monthly report. The agency upgraded its forecast for global oil demand growth in 2026 while lowering its supply growth estimates, suggesting a smaller surplus next year. The IEA cited stronger economic conditions and reduced output from sanctioned countries as key factors.
In contrast, data released by the Organization of the Petroleum Exporting Countries (OPEC) indicated that global oil supply and demand are likely to remain closely balanced in 2026, diverging from IEA projections and other forecasts that point to a significant surplus.
